AIMA/ACC respond to ESMA consultation on changes to securitisation disclosure templates
18 March 2024
The response emphasised that it is necessary to undertake a full revision of the EU Securitisation Regulation in order to address challenges arising from the disclosure templates regime and other interconnected parts of the Regulation.
IMA and the ACC responded to the European Securities and Markets Authority’s (ESMA) consultation paper outlining options for potential changes to the current securitisation disclosure framework.
The response also highlighted that there are many elements of the disclosure framework under Article 7 that ESMA can fix in the meantime by focusing on the Option C approach, namely focusing on a targeted review for streamlining the information required and developing a new dedicated template for private securitisations.
More specifically, ESMA should remedy the following challenges:
- Loan-Level Data (LLD): granularity requirements currently fail to provide investors with material information, particularly in private securitisations. These requirements should be driven primarily by investors’ needs for different types of data depending on the asset class.
- Private securitisations: disclosure templates for private securitisations should be separated from the requirements for public securitisations, as the investor base for the two is very different. The current regime does not consider the ability of investors to tailor reporting and instead imposes costs to originators and sponsors that add little value and place EU investors at a competitive disadvantage.
- Simplifying and streamlining the templates: the templates should broadly be simplified and streamlined, and some unnecessary should be deleted. The proposal to create different templates based on the characteristics and nature of underlying assets should be carefully considered to avoid imposing additional costs and burdens on the market.
AIMA
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